<strong>Creat<strong>in</strong>g</strong> <strong>Prosperity</strong>: <strong>the</strong> <strong>role</strong> <strong>of</strong> <strong>higher</strong> <strong>education</strong><strong>in</strong> driv<strong>in</strong>g <strong>the</strong> <strong>UK</strong>’s creative economyivResearch and <strong>in</strong>novationHigher <strong>education</strong> makes a critically important contribution to <strong>in</strong>novation <strong>in</strong> <strong>the</strong> <strong>UK</strong> creative economythrough research <strong>in</strong> an expand<strong>in</strong>g range <strong>of</strong> academic discipl<strong>in</strong>es. This is evident <strong>in</strong> a number <strong>of</strong>important ways:• The quality 6 is high and <strong>the</strong> economic, cultural and social impacts <strong>of</strong> research relat<strong>in</strong>g to <strong>the</strong>creative economy are considerable 7 . Academic research not only contributes vital understand<strong>in</strong>gto <strong>the</strong> creative economy, but also <strong>in</strong>fluences <strong>the</strong> development <strong>of</strong> new cultural and commercialpractices, processes and products.• There is grow<strong>in</strong>g focus on multidiscipl<strong>in</strong>ary research and <strong>in</strong>novation that br<strong>in</strong>gs toge<strong>the</strong>r expertiseand knowledge <strong>in</strong> science, eng<strong>in</strong>eer<strong>in</strong>g, creativity and bus<strong>in</strong>ess to address <strong>the</strong> <strong>in</strong>novation needs <strong>of</strong><strong>the</strong> creative economy. This has been develop<strong>in</strong>g <strong>in</strong> <strong>higher</strong> <strong>education</strong> for some time, but has beengiven greater emphasis through <strong>the</strong> Research Councils <strong>UK</strong> (RC<strong>UK</strong>) Digital Economy Programme.• The outputs <strong>of</strong> this research are f<strong>in</strong>d<strong>in</strong>g successful application both with<strong>in</strong> and beyond <strong>the</strong> creative<strong>in</strong>dustries <strong>in</strong> markets such as healthcare, defence, <strong>education</strong> and manufactur<strong>in</strong>g, highlight<strong>in</strong>g <strong>the</strong>wider value <strong>of</strong> <strong>the</strong> creative <strong>in</strong>dustries to <strong>the</strong> <strong>UK</strong> economy.• There is widespread and multifaceted <strong>in</strong>teraction between universities and <strong>the</strong> creative <strong>in</strong>dustries,evolv<strong>in</strong>g collaborative, <strong>in</strong>formal and iterative processes <strong>in</strong> l<strong>in</strong>e with <strong>the</strong> characteristics <strong>of</strong><strong>the</strong> <strong>in</strong>dustries.• A number <strong>of</strong> universities have developed as regional hubs for <strong>in</strong>novation, draw<strong>in</strong>g toge<strong>the</strong>racademic and bus<strong>in</strong>ess talent <strong>in</strong> networks and spaces that encourage experimentation and risktak<strong>in</strong>g – essential build<strong>in</strong>g blocks <strong>of</strong> successful <strong>in</strong>novation.However, <strong>the</strong> level <strong>of</strong> <strong>in</strong>vestment <strong>in</strong> academic research relat<strong>in</strong>g to <strong>the</strong> creative economy, although<strong>in</strong>creas<strong>in</strong>g, is still modest <strong>in</strong> comparison to science discipl<strong>in</strong>es. This partly reflects <strong>the</strong> high costs <strong>of</strong>science-based research, but is also a result <strong>of</strong> <strong>the</strong> belief <strong>of</strong> successive governments that science,technology, eng<strong>in</strong>eer<strong>in</strong>g and ma<strong>the</strong>matics (STEM) subjects represent <strong>the</strong> exclusive route to economicsuccess. This has been fur<strong>the</strong>r confirmed <strong>in</strong> <strong>the</strong> recommendations <strong>of</strong> <strong>the</strong> Browne Review and <strong>the</strong>announcements <strong>in</strong> <strong>the</strong> 2010 Comprehensive Spend<strong>in</strong>g Review.It also reflects <strong>the</strong> difficulties <strong>of</strong> assess<strong>in</strong>g some forms <strong>of</strong> creative research, most obviously practicebasedresearch <strong>in</strong> <strong>the</strong> creative and perform<strong>in</strong>g arts, and <strong>of</strong> demonstrat<strong>in</strong>g <strong>the</strong> impacts <strong>of</strong> collaborativeand iterative research and knowledge exchange activities us<strong>in</strong>g science-based metrics (for examplelicences, patents, sp<strong>in</strong>‐outs).There are also challenges for universities <strong>in</strong> structur<strong>in</strong>g and deliver<strong>in</strong>g valuable multidiscipl<strong>in</strong>aryresearch with<strong>in</strong> sometimes rigid faculty structures and subject-based fund<strong>in</strong>g models. It is<strong>the</strong>refore encourag<strong>in</strong>g that <strong>the</strong> ref expert panels, report<strong>in</strong>g to hefce on <strong>the</strong> outcomes <strong>of</strong> <strong>the</strong> impactpilot exercise, have recommended that a broader def<strong>in</strong>ition <strong>of</strong> impact be adopted by <strong>the</strong> fund<strong>in</strong>gcouncils and that <strong>the</strong> <strong>in</strong>itial list <strong>of</strong> impacts identified by hefce need to be developed fur<strong>the</strong>r.Especially for <strong>the</strong> arts and humanities.The structure <strong>of</strong> <strong>the</strong> creative <strong>in</strong>dustries as sectors compris<strong>in</strong>g ma<strong>in</strong>ly small and micro-bus<strong>in</strong>essesmakes engagement with <strong>higher</strong> <strong>education</strong> difficult, and <strong>the</strong>re are barriers on both <strong>the</strong> demand andsupply sides:• For academics, engagement with small and medium enterprises (SMEs) is difficult due to <strong>the</strong>fragmented company base, and is not clearly rewarded. Constra<strong>in</strong>ts on academics’ time andcultural issues <strong>in</strong> academia may also be a major barrier.• For creative bus<strong>in</strong>esses, costs and time are barriers, and many struggle to articulate <strong>the</strong>ir<strong>in</strong>novation needs clearly or even to recognise what <strong>the</strong>y do as <strong>in</strong>novation.Executive summary
<strong>Creat<strong>in</strong>g</strong> <strong>Prosperity</strong>: <strong>the</strong> <strong>role</strong> <strong>of</strong> <strong>higher</strong> <strong>education</strong><strong>in</strong> driv<strong>in</strong>g <strong>the</strong> <strong>UK</strong>’s creative economyvMany <strong>of</strong> <strong>the</strong> valuable <strong>in</strong>itiatives developed to encourage and support knowledge exchange betweenuniversities and <strong>the</strong> creative <strong>in</strong>dustries also rely on precarious sources <strong>of</strong> fund<strong>in</strong>g, which are ei<strong>the</strong>rdisappear<strong>in</strong>g or are under serious threat.Skills, employability and entrepreneurshipThe creative <strong>in</strong>dustries thrive on talent, and are graduate rich. Demand for, and supply <strong>of</strong>, relevantcourses is <strong>in</strong>creas<strong>in</strong>g. The research estimates that as much as 16 per cent <strong>of</strong> <strong>the</strong> student body maybe <strong>in</strong>volved <strong>in</strong> courses relevant to <strong>the</strong> creative economy, a strong <strong>in</strong>dicator <strong>of</strong> <strong>higher</strong> <strong>education</strong>’scontribution to <strong>the</strong> sector.However, <strong>the</strong> primary purpose <strong>of</strong> <strong>higher</strong> <strong>education</strong> is not to develop narrow skill sets, even thoughoccupational skills are a necessary element <strong>in</strong> <strong>the</strong> <strong>education</strong> process. Higher <strong>education</strong> nurtures anddevelops creative talent, and produces graduates with deep specialism and, <strong>in</strong>creas<strong>in</strong>gly, <strong>the</strong> abilityto work <strong>in</strong> multidiscipl<strong>in</strong>ary teams. It is this talent that will <strong>in</strong>novate new products, processes andbus<strong>in</strong>ess models to drive <strong>the</strong> creative economy <strong>of</strong> <strong>the</strong> future.q‘In this <strong>in</strong>dustry <strong>the</strong> most important skills that recruits can have are communication and creativity. It is my beliefthat by foster<strong>in</strong>g relationships between bus<strong>in</strong>ess and academic <strong>in</strong>stitutions we can ensure that graduates leaveuniversity with <strong>the</strong> necessary skills to make <strong>the</strong>ir mark on <strong>the</strong> bus<strong>in</strong>ess world.’Chris van der Kuyl, Chief Executive, brightsolid.p De Montfort University’s BA (Hons) degree <strong>in</strong> game art design is <strong>the</strong>first game art course <strong>in</strong> England to be accredited by Skillset, <strong>the</strong> SectorSkills Council for Creative Media.Executive summary
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